The supply chain, while not directly impacted by the daily shifts in the DOW, must adapt to pressures created by fluctuations driven by this data. In a blog post published by Arkieva they noted that supply chain operations will battle smaller top lines, reduced bottom lines and less cash/ more costs. While these challenges may seem daunting for even the biggest and most efficient supply chain there are many opportunities for operational improvement during an economic downturn.

One opportunity for SCM improvement that spans across the entire supply chain is the implementation of industry best practices. These methods have proven successful in improving overall efficiency and productivity. Another opportunity for supply chain improvement is the implementation of supply chain software to create a flexible, scalable supply chain. Many operators make the mistake of drastically cutting staff, working hours or facilities and this often creates more problems in the long term. Utilizing ERP or WMS software allows SCM businesses to quickly and easily scale operations to save capital without cutting physical assets or critical staff. Controlling cost to serve while keeping in mind the importance of maintaining customer and partner relationships is also a strong opportunity for cost savings during lagging economic times. It is cheaper to maintain these existing relationships than find and develop new ones so it is critical to keep lines of communication open and expectations clear. Many supply chains also reconsider their commodity management strategies during times of stress and often choose to reduce on-hand inventories to minimize holding costs. This is an effective strategy if well managed to prevent out-of-stock scenarios. Lastly, preparing for the inevitable economic rebound is vital. Focus on strategic hiring and employee retention efforts and invest in both long term and short term projects. Do not be short-sighted and consider only the short term repercussions of your supply chain strategies.

To learn more about these supply chain strategies contact Datex experts today at marketing@datexcorp.com or 800.933.2839 ext 243.

Featured Content

The Friday Report: October 11, 2019

The Friday Report: October 11, 2019

Bipartisan Effort by Senators to Share Info on Supply Chain Threats Out of concern for risks to national security, a bipartisan group of senators want all branches of government to share information on technology supply chain threats.  Leading members of the Senate...

The Friday Report: October 4, 2019

The Friday Report: October 4, 2019

U.S. Announces Tariffs on $7.5 Billion of EU Goods Following the recent decision by the World Trade Organization (WTO), the U.S. Trade Representative announced changes to tariff rates for EU goods.  Beginning on October 18th, the United States will begin charging a...

The Friday Report: September 27th, 2019

The Friday Report: September 27th, 2019

Another Reason to Eat at McDonald’s in Canada McDonald’s has announced a 12-week test of the Beyond Meat burger in 28 of its restaurant locations in Southwestern Ontario, including the largest city in Canada, Toronto.  Calling it a P.L.T. (plant, lettuce and tomato)...

© Copyright 2019 - Datex Corporation. All rights reserved.

Pin It on Pinterest

Share This
X